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back to article Integrator 2e2 axes 319 UK staff, halts pay cheques - insiders

Troubled integrator 2e2 Group has let go 319 UK sales and admin staff and, to add insult to injury, their pay for last month is being withheld, sources claim. After weeks of negotiations by investors and bosses to keep the debt-laden business afloat, the decision was taken yesterday to call in administrators FTI Consulting for …

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Anonymous Coward

Re: Outsourcing is a ticking time bomb

You've got a point there when it comes to intellectual property and services.

The business landscape is changing. I have to put in place not only IT contingency but also business contingency for my operations. Even established players can get bought up, and after some time they call in the administrators. Are we sure this is an isolated case? Can't also Indian and Philippine companies go out of business? We not only want to talk about the whole business, how about deterioration of service and IP, privacy and security incidents? How do then community supported products compare?

One of the most successful companies on this planet don't use outsourcing. They are developing their own software, even screwing together their own servers. Just type "Google server" in Youtube and enjoy. Building services using DIY and open source is not in the vocabulary of most of today's CIOs who learned IT on 80286s in the 1980s.

Whisper it: insourcing is the hottest ticket out there at the moment.

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who will give them credit

who will give them credit when they are refusing to pay staff for work already done.

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Re: who will give them credit

More to the point, who's going to turn up to work for a company that refuses to pay for work already done?

Except. of course, to take goods from the office to the resale value of the wages owed.....

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Re: who will give them credit @Andyf

Except that leaves the staff open to legal action by the administrators...

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Devil

Re: who will give them credit

".....Except. of course, to take goods from the office to the resale value of the wages owed....." Appearing soon on eBay, several laptops, one careful owner, slight sticky mark where the asset tag was removed....

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Unhappy

Re: who will give them credit @Andyf

"Except that leaves the staff open to legal action by the administrators..."

That's IF the administrators can pick individuals out of a mob of angry staffers...

I take your point though, company assets and all that. Boils my blood that people can be treated like this, though. Next report will probably be that any staff who haven't turned up for work following not getting paid will be fired for breach of contract and not get redundency pay, or somethign similar.

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Anonymous Coward

Re: who will give them credit @Andyf

Potential legal action from the administrators only if they can prove who took an item. A friend worked for Enron, and made off with a number of laptops when they collapsed. He said that with hindsight it wasn't a surprise they went bust - among the many pointless puchases by the senior management was an enormous model railway for the boardroom!

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WTF?

Re: who will give them credit @SP

Many years ago (2002 I think) when The Accident Group in Manchester went belly up, they owed their staff back pay as well. There were reports (and pictures) of some staff removing fully populated Cisco 6500 switches from the DC, loading them into their cars/vans and driving off (wasn't just cisco switches but as I'm in networking that caught my eye). I don't recall the administrator going after them but I may be wrong.

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Anonymous Coward

Re: who will give them credit @Andyf

Andyf, I don't blame you. I feel the same.

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Anonymous Coward

Re: who will give them credit @Andyf

I don't think you are correct, if 2e2 don't pay the staff then the contract is already breached

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Van
Pint

Re: who will give them credit

Ironically, the staff would get a better price on ebay than what the company or administrators would get from a 'house clearance' type company.

Maybe administrators should try to pay the staff with hardware, whilst it's still there.

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Anonymous Coward

what utter scum

I bet the directors still walk out with a reasonable package from all of this.

The staff should all walk today, let the directors deal with the mess, then class action sue them for their pay.

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Re: what utter scum

No class action law suits in the UK. I do agree thought that the directors will most likely walk away with their massive pension pots and bonuses intact, only to wreak havoc on other companies. All thanks to the old boys network that keeps the senior suits on the merry-go-round.

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Anonymous Coward

Re: what utter scum

Frankly, they should be taken to task over that.

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Anonymous Coward

"Customers will be asked to undertake to pay amounts due to the companies (without set-off or counterclaims) together with an undertaking to pay for the ongoing cost of services as they are incurred at the existing contractual rates,"

So the firm are wanting to rip off customers who are also creditors? If I was a customer, my reply would be good luck with that.

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Meh

Tricky...

This may prove tricky and will depend on the contractual documents applicable. Usually, they will always include a clause that renders contracts null and void on any insolvency process of a supplier or customer.

2e2 customers are however are legally obliged to pay debts for services already rendered and delivered.

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R69

You could see this coming...

....about 5 years ago.

I used to work for one of the companies 2e2 bought out and left as soon as that deal completed - this was obvious from the start. No business that is as aggressively acquisitive as this over such a short time frame is genuinely in it for the long term - its about lining your pockets as quick as poss for the people at the top, and then buggering off when it all goes wrong.

How long until Capita follow suit i wonder, though the sheer volume of government contracts in their bag may stave off a total collapse ....

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Unhappy

Fantastic - Not!!!

My husband was an employee of 2e2 until a conference call along with the other 318 at 11am this morning, They were told they were redundant with immediate effect and yes you thought right - you won't be paid on Thursday!!

Thanks for nothing 2e2, not only are we now broke this month but you had the audacity to let my husband incur another £100 petrol costs by sending him to Scotland yesterday to work on a contract!!

B******S!!!!!!

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Re: Fantastic - Not!!! @alliej

My sincerest thoughts go out to you - I also know of a few people who went to 2e2 who've been affected. Shits to the management on this one - they should be barred from directorships for 20 years

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Re: Fantastic - Not!!!

My condolences! That's unfair. I hope your husband finds something new soon.

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FAIL

Re: Fantastic - Not!!!

Extremely sad event and unwarranted treatment of staff. Detest situations like these as employees and suppliers end up losing most if not all but investors and directors seemingly walk away with less pain.

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If I worked there and they were holding my wages

I'd be walking out of there with my PC and anything else I could carry.

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Re: If I worked there and they were holding my wages

That's why they give you a small cardboard box for your stuff and an escort to the gate!

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Paris Hilton

Re: If I worked there and they were holding my wages

I'd like to see the fuckers walk 300 plus people to the gate.

The laws on corporate responsibility really need to be tightened up in this country - and employees should be placed at the head of the list when it comes to doling out whatever assets remain. Waiting until two days before pay day before telling people they won't be paid is not just unfair it's irresponsible and should not be allowed to go unpunished.

Bet the director's made sure their expense accounts were all settled before they made the announcement.

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Anonymous Coward

Sincere condolences to all involved.

I wish that the articles would stop saying that 2e2's international businesses are unaffected. They don't have any...they're just tax shills surely!

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(Written by Reg staff) Silver badge

"they're just tax shills surely!"

They're mainly acquisitions.

C.

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Windows

Does anyone know if the out going Finance Director Simon Burt was told to sign on at the job centre on his way home two weeks ago?

Or, just possibly, did he get paid his notice period, pension contributions, etc ...

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Bet the got a nice pay off.

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FAIL

Who is going to do supplier them?

Who will pick it up?

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WTF?

Employees shafted once again

In Ontario, Canada, employees are priority creditors before banks and mortgage holders.

Pity more countries don't do this.

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Anonymous Coward

Re: Employees shafted once again

That's true in the UK too, we have to claim what the government will give us in compensation for lost salary and we are counted as prefferential creditors for the rest of the salary. The government portion is not as much as I was getting paid and comes out of National Insurance contributions.

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Anonymous Coward

Advice

I imagine that those who were made redundant were escorted off the premises so that they couldnt take anything with them.

However anyone who is still employed by this bunch should be immediately going on sick leave. I mean as of tonight/tomorrow. Pick up any kit, phones, etc you can, and phone in asap on the sick. This will give you time to find a new job as you wont have to be at work. The only reason you are still employed is so the administrators can try and recoup the credit for services supplied, if they dont leave you in the customer can claim breach of contract. You will not be paid I can almost guarantee it.

Also as you are at home any kit you have on you cannot be removed. Just deny all knowledge of said kit, you have left it in the office, in the data center, etc... Remember not to use it, answer calls to it, etc, you wantto establish you dont have it!

I would not normally advocate theft, etc, but this bunch of shysters is going to screw everybody.

Anonymous obviously...

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Re: Advice

And the staff who are left haven't even been told if they're gonna get paid!!!!

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Anonymous Coward

Re: Advice

Hence I wouldn't be going in, no point in paying for travel costs. I would be staking my money they wont get paid. Take the chance now to get your CV polished up, speak to agencies, go off on the sick. If they somehow recover you wont be any worse off.

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Anonymous Coward

Re: Advice

>Pick up any kit, phones, etc you can

Forget the phones, they will be blacklisted as soon as the administrators discover. Certainly, NEVER use the SIM again, and if you've got the phone, wait several months before trying it with a spare PAYG SIM card.

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Big Brother

Don't return the laptops

Who is looking after the interests of the employees? Not the administrators that is for certain. Surely they should appoint a leader.

Furthermore I am not sure that you are obliged to return the laptops or any other equipment if you are not getting paid.

Take what you can out of the company, they owe you!

Aslo if 2e2 in another form survives they must expect to be sued for unpaid salaries.

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Stop

Re: Don't return the laptops

"....Furthermore I am not sure that you are obliged to return the laptops or any other equipment if you are not getting paid......" Be careful as those laptops are assets and belong to the company. Whilst you could argue that the compnay owes you cash it is up to the auditors to sell the business (which means someone else then owns the laptops) or liquidate the assets. By helping yourself you are committing theft, and a criminal record is not a good thing to be adding to your CV.

Now, if you should find yourself inthe position that you can pinch the laptop that is used by a senior manager or director without them having any way of tracing it to you.....

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Anonymous Coward

Re: Don't return the laptops

Nope, call it a lien against your salary. Tell them they've got x days to pay your full salary, or you'll be liquididating the equipment and then pursuing them for the balance. ;)

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Anonymous Coward

Re: Don't return the laptops

answer with "Laptop, what laptop? I left it at work guv, in the server room/build room/desk. Sorry"

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Facepalm

Re: Re: Don't return the laptops

"Laptop, what laptop? I left it at work guv, in the server room/build room/desk. Sorry"

Yeah, just make sure the disks from the CCTV system go mysteriously missing too..... Oh, what, you actually believe those CCTV cams aren't there to record employee thefts too?

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Anonymous Coward

I did this...

When I was made redundant last October

Walked in the next day and filled the car up with equipment

They didn't care as the entire office was going to be sent to the tip

Got a nice projector, server, 10 x 2TB drives, a couple of 22" LCD monitors and a few tools

I am keeping them for a rainy day, which is looking like today

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Optional?

Fairly sure in UK law employee salaries for work already completed (as opposed to redundancy and expenses) are top of the list for Administrators to pay from funds available.

Most administrators allow for "lost equipment" to a certain degree.

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Anonymous Coward

Re: Optional?

Erm yes and no, you will be considered highest priority, but you might be waiting a long time, and it is possible that you will only get x pence in the pound.

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Big Brother

Re: Optional?

A percentage of the pay owed is better than nothing!!

They should have given us a heads up earlier at the very least.

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Re: Optional?

The law may pay say that unpaid employees are the highest priority, but that doesn't mean that they'll get paid anytime soon. As the HMRC are the first to get paid, if there's not enough cash from liquidating the company (which itself takes time), then the money comes from a state fund that pays out very belatedly.

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Anonymous Coward

Bloody Skivers

Another 319 Skivers for the govermint and daily mail to complain about....

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Big Brother

Re: Bloody Skivers

No hard working people denied their rightful salary. take that stupid comment off!

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Re: Bloody Skivers

@Hank Rearden - adjust your sarcasm detector, it's clearly faulty.

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